Vaca Muerta Tests New Shale Tech as Output Pressures Grow

YPF and Baker Hughes pilot advanced pump systems in Vaca Muerta, signaling a cautious shift toward steadier shale production and basin modernization

12 Dec 2025

Argentina’s Vaca Muerta shale basin is testing a shift in priorities as operators look beyond rapid drilling towards sustaining production over time.

State-owned YPF and US oilfield services group Baker Hughes have launched a pilot project to test upgraded electric submersible pumps in mature shale wells. The aim is to deliver more stable output as reservoir pressure declines, a common problem that often leads to costly workovers and interruptions.

The trial is at an early stage, but it reflects a broader change across the basin. Vaca Muerta has expanded quickly over the past decade, helping Argentina lift oil and gas output and support export ambitions. As the play matures, however, operators are placing greater emphasis on how wells perform over their full life cycle, rather than how quickly they are brought on stream.

Industry sources say initial results point to steadier pump performance. Equipment reliability is a sensitive issue in unconventional fields, where frequent interventions can disrupt production planning and push up operating costs in an already tight-margin business.

Executives have played down expectations. A YPF representative described the early data as encouraging but not transformative, pointing to improved operational stability rather than higher headline output. Baker Hughes has highlighted the potential for better efficiency and reduced downtime, while stressing that longer monitoring will be needed before firm conclusions can be drawn.

The pilot fits into a wider effort to modernise Vaca Muerta. Operators are investing in infrastructure, logistics and incremental technology improvements to make the basin more competitive internationally. At the same time, regulators are pressing for cleaner and more reliable operations, including lower flaring rates and fewer equipment failures.

Similar thinking is emerging across the global shale industry. After years of rapid expansion, producers are increasingly focused on cost control, equipment reliability and well longevity. In South America, such changes could help underpin more stable energy revenues and support longer-term export plans.

Scepticism remains. Advanced pumps cannot remove the natural decline of shale reservoirs or replace careful reservoir management. Even so, if the performance gains are sustained, the project could mark a modest but practical step forward.

For Vaca Muerta, the next phase of development may depend less on drilling faster and more on producing more consistently.